GameStop Plummets As Wal-Mart Goes Nuclear Cutting Game Prices

GameStop (GME) is going to have to find a way to stay competitive this holiday season. Its stock is currently down nearly 8% due to Walmart's (WMT) new strategy of slashing prices on video games:

Bloomberg: GameStop Corp. fell the most in the Standard & Poor's 500 Index on concern the world's largest video- game retailer may be forced to lower prices after Wal-Mart Stores Inc. offered discounts on its top video games.

BENTONVILLE, Ark., Dec. 2 /PRNewswire-FirstCall/ -- Gamers of all ages can gear up to save after Thanksgiving weekend as Walmart announces its next round of holiday savings, including new Rollbacks on many top 2009 games and a $50 Gift Card with Wii console purchase. Now through Dec. 24, the retailer will offer 15-20% savings on 25 top video game titles, including games for kids, families and extreme gamers, in stores. Starting Saturday, Dec. 5, shoppers with a Wii on their wish list will have the added bonus of receiving a $50 Walmart Gift Card with the purchase of a $199 Wii console in stores, through Dec. 12 while supplies last.*

Walmart expects this news will please many moms this holiday. According to recent research on holiday shoppers, 58 percent of Walmart moms considering the purchase of video games believe that games are the "must have" gift this holiday season for family and kids. As for the variety of games, more than half of those moms are considering purchasing kids games, 41 percent action adventure, and one third sports-themed games this season.**

"We have promised shoppers that through the holidays, even after last week, we would continue to offer real savings on items we know are on shoppers' minds, and this offer is for anyone buying games as gifts or even for themselves," said Greg Hall, vice president media and services, Walmart Entertainment. "Regardless of whether you have a PS3, Xbox or Wii, these savings will help anyone to build a gaming library with great new titles."

Video Games Savings through Dec. 24.

These newly priced titles, most of which are also available on www.walmart.com today, include these below and many others:

Mario & Sonic at the Winter Olympics (Wii) - now $40

Lego Rock Band (Wii) - now $40

Rock Band: Beatles (Wii) - now $40

MySims: Agents (Wii) - now $40

Tekken 6 (Xbox 360 and PS3) - now $50

Madden 2010 (Xbox 360 and PS3) - now $50

WWE 2010 (Xbox 360) - now $50, WWE 2010 (Wii) - now $40

Batman Arkham Asylum (Xbox 360) - now $50

Dragon Age: Origins (PS3) - now $50

Left 4 Dead 2 (Xbox 360) - now $50

Halo 3:ODST (Xbox 360) - now $50

Uncharted 2 (PS3) - now $50

Wii Console with $50 Gift Card

Beginning this Saturday, Dec. 5 at 8 a.m. through Dec. 12, Walmart will offer a $50 Walmart Gift Card immediately after the purchase of the $199 Wii console. The card can be used on the very next purchase or at any future purchase at any Walmart store.